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Yes, when you when you end with a WS at the end of the INC ROW, begin bind off on the RS.
I suspect that you bind off 35 for the right shoulder and then work to the end of the row, turn and then bind off the 85sts, 35sts for the left shoulder and the rest for the back.
On the front, yes, follow the instructions for the sleeves too.
On the neck shaping, you're on a RS row working to the center marked sts and binding off the center 40sts. You then work to the end of the row and turn to the WS row. This next purl row is the one row that is worked with 2 balls of yarn (at least to this point).
Which vogue pattern is this? Have you checked the website for errata?